Black market sales of stamp papers have surged across several markets following the exposure of a widening scam inside the Federal Treasury Office, as investigators continue to uncover new layers of financial irregularities. Officials familiar with the ongoing probe say low-denomination stamp papers have largely disappeared from the open market and are now being sold at inflated prices, creating disruptions for legal transactions and fuelling public concern over governance failures.
According to investigators, stamp papers worth Rs296.49 million were issued by the Federal Treasury Office without the corresponding amount ever being deposited into the national treasury. This confirmation has reinforced suspicions of large-scale financial misconduct and systemic weaknesses within treasury operations. During the interrogation of arrested suspects, investigators established that the funds linked to these stamp papers were never credited to state accounts, pointing to deliberate manipulation rather than clerical errors.
The investigation has also revealed that the irregularities were not limited to stamp papers alone. Initial findings indicate that court fees and foreign bills collected through the treasury system were similarly not deposited into government accounts. Officials said this suggests a broader pattern of revenue leakage that may have been ongoing for years, raising questions about oversight mechanisms and internal controls.
As the probe expanded, investigators identified 2,638 fake and bogus challan forms that were allegedly issued by the Federal Treasury Office. These challans were reportedly used to obtain stamp papers without making actual deposits into the State Bank of Pakistan. It has further emerged that the Federal Treasury Office has not undergone any formal audit for the past four years, a lapse that investigators believe played a critical role in allowing the scam to continue undetected.
The inquiry team has now formally sought explanations from relevant authorities regarding the failure to conduct regular audits. Letters have been sent to determine responsibility and accountability for the prolonged absence of financial scrutiny. Officials involved in the investigation said the lack of audits created an environment where forged documentation and collusion could flourish without timely detection.
In a related development, courts have rejected bail applications filed by 16 employees of the Federal Treasury Office who were arrested in connection with the case. The decision signals a tougher stance by the judiciary as authorities attempt to recover losses and deter similar misconduct in the future. Investigators believe further arrests may follow as the inquiry progresses and additional evidence comes to light.
Separately, the Federal Investigation Agency has launched an inquiry into the black marketing of stamp papers. The FIA has decided to take action against individuals and networks involved in the illegal sale of stamp papers at inflated prices. Officials said the artificial shortage created by the scam has directly contributed to the rise of black market activity, affecting litigants, businesses and property transactions.
The stamp paper scandal first came to public attention through investigative reporting last month, which suggested that the fraud could be one of the largest revenue leakages in recent years. Subsequent inquiries supported these claims, revealing that officials of the Federal Treasury Office were allegedly working in collusion with stamp vendors. These vendors reportedly obtained stamp papers using fake deposit slips without transferring funds to the State Bank of Pakistan.
Under standard procedures, stamp vendors are required to deposit the relevant fees with the State Bank before receiving stamp papers from the treasury. Investigators say this process was systematically bypassed through forged documentation, a practice that may have continued since 2021. The absence of a real-time verification system between the State Bank of Pakistan and the Federal Treasury Office is believed to have enabled the scam to remain hidden for an extended period.
Following the initial disclosures, a high-level inquiry committee was constituted and an FIR was registered against several vendors. Some suspects reportedly fled abroad to avoid arrest, complicating recovery efforts. Officials have warned that while Rs296.49 million has been confirmed so far, the total financial impact of the scam could run into billions of rupees as investigations continue.
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